Turkish PM “We will see fluctuations in economy until Donald Trump takes office”

In an interview with state broadcaster TRT Haber late on Nov. 24th Turkish PM Yıldırım said  global markets would continue to see steep fluctuations over the next 1.5 months until U.S. President-elect Donald Trump took office. Yıldırım said ”The turbulence we are experiencing is temporary, our economy is resistant to this … We will continue to see steep fluctuations over the next 1.5 months, until U.S. President-elect Donald Trump takes office, as analysts have emphasized”  also noting that Turkey had faced several shocks, including a failed coup attempt, which played a key role in making the lira the one of the worst performing currencies, recently.

The lira has lost some 14 percent of its value against the dollar over this year, hit by both the strengthening dollar and investor concerns.  Turkey’s Central Bank raised its benchmark interest rate by 50 basis points on Nov. 24 in an unexpected move, ordering the first increase in nearly three years, as a skyrocketing U.S. dollar and domestic worries continue to batter the lira.

The prime minister also commented that those days would pass and as government members they had had some forecasts and reflected on whether other tools could be applied”. Yıldırım said there was no loss in Turkey’s net foreign exchange reserves and the economy was able to ride out current turbulence adding that the government would “take the required measures to support the lira until sharp global fluctuations end.”

He drew attention to the point there was “no multi-headed system in economic administration,” dismissing claims on the contrary.  “I do not accept such claims. I am the head of the Economic Coordination Board. After me, Deputy Prime Minister Mehmet Şimşek can talk about the economy, as this is his scope of duty,” the prime minister stated.